1. The Small Business Innovation Research Program U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R h t t p : / / w w w. u s c. e d u / g o / t t c Presented by: Ken Dozier, Executive Director Date: April 2000

2. SBIR is a federal set-aside program for small businesses. SBIR funds high-risk, early-stage technology R&D projects that have potential for commercial success. SBIR funds are not loans! What is SBIR? Presented by: Ken Dozier Date: April 2000

3. Objectives of the SBIR Program Presented by: Ken Dozier Date: April 2000 Stimulate technological innovation Use small business to meet federal R&D needs Increase private sector commercialization derived from federal R&D Encourage the participation by disadvantaged and minority persons in technological innovation

4. Total of all agencies is approximately $1.1 Billion! DoD$540 Million (FY00) DHHS$307 Million (FY99) NASA$89.1 Million (FY99) DoE$80 Million (FY00) NSF$56 Million (FY99) USDA$13.3 Million (FY99) DoC$7.5 Million (FY99) DoT$7.4 Million (FY98) EPA$5.6 Million (FY97) DoED$5.3 Million (FY99) Agency SBIR Funding Levels Presented by: Ken Dozier Date: April 2000

5. Eligibility criteria for small businesses to participate in SBIR: U.S. owned and independently operated, with principal place of business in the U.S. U.S. owned and independently operated, with principal place of business in the U.S. Organized for profit Organized for profit Fewer than 500 employees, including all affiliates Fewer than 500 employees, including all affiliates Small Business Participants in SBIR Presented by: Ken Dozier Date: April 2000

6. Phase I: Feasibility Study Funded at $50,000 to $100,000, depending on the agency Funded at $50,000 to $100,000, depending on the agency Six month effort Six month effort Phase II: Prototype Development Funded at $225,000 to $750,000, depending on the agency Funded at $225,000 to $750,000, depending on the agency Up to two year effort Up to two year effort Phase III: Commercialization No SBIR funds available for Phase III No SBIR funds available for Phase III Small business procures other development funds, product orders, intellectual property licenses, commercial partners, etc. Small business procures other development funds, product orders, intellectual property licenses, commercial partners, etc. The Three Phases of SBIR Presented by: Ken Dozier Date: April 2000

7. Approximately 12% of Phase I proposals are funded, on average, across all agencies. Approximately 40% of Phase II proposals are funded, on average, across all agencies A Very Competitive Program Presented by: Ken Dozier Date: April 2000

8. Federal Express Corp. Federal Express Corp. Intel Corp. Intel Corp. Apple Computer, Inc. Apple Computer, Inc. Compaq Computer Corp. Compaq Computer Corp. Chiron Corp. Chiron Corp. In their early days as small start-ups, all of these companies received support through the SBIR program or from SBA-sponsored Small Business Investment Companies. You’re in Good Company in SBIR You’re in Good Company in SBIR Presented by: Ken Dozier Date: April 2000

9. Investment Sources for Formative Stage Companies Investment Sources for Formative Stage Companies Presented by: Ken Dozier Date: April 2000 Family and Friends Up to $100K SBIR/STTR Venture Capital $350K to $850K per project Average of $7.5 million in first round* * Price Waterhouse Coopers MoneyTree US Report, Full Year & Q4 1999 Results

10. Who’s Getting the Venture Capital? Presented by: Ken Dozier Date: April 2000 Source: Price Waterhouse Coopers MoneyTree US Report, Full Year & Q4 1999 Results Total invested in 1999 was $35.6 billion Internet companies received $19.9 billion in 1999

11. NASA Far West Regional Technology Transfer Center NASA Far West Regional Technology Transfer Center http://www.usc.edu/go/TTC/NASA/SBIR/index.html 213-743-2353 213-743-2353 800-642-2872 800-642-2872 nasa@usc.edu nasa@usc.edu Participating agency SBIR web sites Participating agency SBIR web sites eg. NASA eg. NASA http://sbir.nasa.gov http://sbir.nasa.gov For Further Information... Presented by: Ken Dozier Date: April 2000